Author: PPD Team Date: 08/05/2025
The Cabinet Committee on Economic Affairs (CCEA) has approved the revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) policy to streamline coal allocation for thermal power plants across central, state, and private sectors.
The revised policy introduces two simplified categories for coal linkages—Window-I and Window-II.
Window-I allows central and state government-owned power generators, including joint ventures and subsidiaries, to receive coal at notified prices under the existing allocation mechanism.
Window-II opens coal allocation to all domestic and imported coal-based power producers through auction at a premium above the notified price. These linkages can be secured for durations of up to 25 years, giving generators the flexibility to sell power as per their commercial strategy.
The policy aims to ensure coal availability across all generating sectors. It allows coal use from Un-requisitioned Surplus (URS) capacity for sale in power markets, increasing power availability on exchanges and optimizing station operations.
The revised policy supports additional pithead thermal capacity and encourages substitution of imported coal in imported coal-based (ICB) plants. This is expected to reduce reliance on international coal markets.